Britons cash in on Detroit homes crash

Knockdown prices in depressed American cities are tempting British investors but is it too soon to buy in?

US house prices fell for the fifth consecutive month in November (Ariel Skelley)

British investors are starting to look at foreign property again, with some
snapping up homes in depressed American cities such as Detroit.

The recession hit demand for overseas property, with foreign currency brokers
saying their business over the past two years has been dominated by expats
selling their houses and returning funds to the UK.

However, brokers say the tide has started to turn, with FC Exchange reporting
a surge in clients interested in using overseas property to boost income.

Nick Fullerton at FC Exchange said: “In the past six months or so, we have
started to notice clients seeking to invest again in properties abroad. They
have seen a notable drop in overseas property prices and are finding that
the risks of owning houses abroad are acceptable compared with having money
stagnating in a UK savings account.”